There doesn't seem to be a lot of love for that new stock smell on Wall Street these days. More than 50 of the 114 companies that have gone public on stateside exchanges in 2019 are currently trading below their IPO prices, and the climate is only getting more unkind. Peloton (NASDAQ: PTON) is the latest underwriter misfire, tumbling after the high-end fitness specialist went public on Thursday. September's been rough, with other aspiring debutantes including co-working giant WeWork and Hollywood talent agency powerhouse Endeavor suspending their offerings at the last minute. No one said investing in IPOs would be easy.
Some of the current losers of this year's rookie class will recover, but many of them won't. Peloton joins Jumia (NYSE: JMIA) as two of 2019's IPOs that don't seem likely to bounce back in the year ahead. Let's go over the challenges that will make it hard to fix some of 2019's broken offerings.
Image source: Jumia.